An individual RESP with Kaleido can help you plan effectively for your child’s post-secondary education, and our Registered Education Savings Plan calculator shows you in just a few clicks how much it could be worth when your child turns 18.
Enter your child’s age and the amount you plan to invest each month, then calculate immediately what your education savings could be worth… and whether you should adjust this strategy to reach your goal.
The RESP is the most effective way to finance a child’s post-secondary education, thanks to the following three levers. You need to factor them into your calculations, as they work together to optimize your investment.
You could receive up to $12,8001 in government grants per child!
Every year, the Canadian and Quebec governments boost your contributions: you could receive 30% to 60%2 in grants on your investment.
And the best part? You don’t have to do a thing. The amounts are automatically paid into your RESP.
The money you invest in an RESP—your contributions, grants and returns—grows tax-free.
When it’s time to make withdrawals for education, the grants and accumulated income will count as taxable income for your beneficiary—according to their own tax rate. Your contributions, on the other hand, will be tax-free at the time of disbursement.
The RESP allows you to take full advantage of the effect of compound interest. The calculation is simple: returns accrue not only on your contributions, but also on the grants you receive. This increases the total amount on which compound interest is calculated, amplifying the growth of your savings over time.
Kaleido gives you the momentum to build a solid future for your child with RESPs that are simple, flexible and designed to grow with your family. You also get easy-to-use digital tools, human advice that really supports you, and expert management that helps your savings grow.
Contributions to an RESP automatically entitle you to two basic grants:
Depending on your adjusted family net income, you may also qualify for the additional CESG and additional QESI.
In addition, eligible families can receive the Canada Learning Bond (CLB), worth up to $2,000, without having to contribute.
No. Our calculator’s rate of return is based on an investment strategy that uses realistic return forecasts for different asset classes (equities, bonds, cash, etc.) and adjusts the asset mix as the beneficiary gets older, as outlined in our prospectus.
You don’t lose anything. Your RESP continues to grow thanks to the returns on the amounts already invested and the grants received. New CESG and QESI grants will not be added if you don’t contribute, but it will be possible to recover some or all of them in subsequent years.
However, if your family qualifies, you will continue to receive the Canada Learning Bond (CLB), since no contributions are required for this grant.
There is no minimum contribution required to open an RESP. However, any contribution to an IDEO+ RESP must be at least $10.
The lifetime maximum is $50,000 per beneficiary, for all RESPs combined, if applicable.
Unlike government grants, there are no annual limits on your contributions.
Yes. You can catch up on up to one year’s worth of unused grants per year. This allows you to contribute up to $5,000 per year and recover up to $1,500 in grants.
Absolutely. Even with a shorter horizon, a teenager can still benefit from:
*Your teenager can still receive grants until age 15. To be eligible up to age 17, however, they must meet certain eligibility criteria. See details in RESP for a teen: is it too late and how much can you earn?.
The final amount indicated in our RESP calculator depends mainly on three elements:
So, the earlier in your child’s life you start and the more regularly you contribute (by making monthly instalments, for example), the greater the growth effect.
Yes. Our IDEO+ individual RESP is very flexible. You can contribute whenever you like: monthly, once a year or on a one-off basis. Moreover, you can contribute or adjust your monthly payments at your discretion in Kaleido’s Client space.